Skip to main content

tv   Greta Van Susteren  FOX News  August 5, 2011 10:00pm-11:00pm EDT

10:00 pm
i fell in love. >> sean: that all the time we have left. thank you for being with us. i hope you have a great night. >> greta: fox news alert. the u.s. credit rating has just been downgraded from aaa to aa+. standard & poor's downgraded the united states' credit rating for the first time ever, tonight. despite last week's deal. the deal will affect many americans because it would raise the rates of credit cards, mortgages and car loans. joining us is white house correspondent ed henry. stunning news. >> reporter: it is. in some ways we knew this could be coming. we find out that debt deal hailed by both sides was not good enough there was only a
10:01 pm
trillion cut upfront. basically standard & poor's is saying, like many other people around the country and around the world, are they going to follow through? bottom line for the president this is a stain on his presidency. this is the first u.s. president to have u.s. debt downgraded on his watch. frankly that is why the administration spent all afternoon and evening fighting this behind the scenes. to try to prevent s&p from doing this treasury department got a call this afternoon saying this was going to happen. i'm told officials started going through the paperwork. they believe they found a math error that standard & poor's overcounted two trillion that should not had been counted. white house started pushing back. hoping s&p would think about it over the weekend. call the markets so monday morning there's not a huge problem. instead standard & poor's went forward any way the white house among others are
10:02 pm
pointing out moody's and fitch, other ratings agencies have stuck with aaa ratings. barney frank is saying because of the dodd-frank finally security reform law, they do not have to follow what the agencies say. as you know it is known around the world this agency has downgraded u.s. debt. this is going to be a difficult political moment in addition to the mechanics what kind of effect this will have on americans with interest rates. >> greta: the white house much have -- the white house must have seen this coming. standard & poor's must have known tuesday. it must have hit them before in afternoon. they must have suspected this was coming. >> last month, standard & poor's said if you cut the debt deal, we a still move for with the downgrade any way. white house and democrats will say this is why the president pushed so hard for a grand bar
10:03 pm
engine with speaker boehner, he wanted four trillion in cuts. speaker boehner walked from those talks twice. speaker boehner's account as you know, look president obama was moving the goalpost and trying to add more taxes on and that's why he walked. republicans will point out, look they voted for the ryan budget which added more deficit savings. they were pushing cut, cap and balance, et cetera both sides will be pointing fingers. at the end of the day there's one president and that president now has become the first in u.s. history to have debt downgraded on his watch. >> greta: how much is he engaged to stall or have standard & poor's take another look? >> the early sense is the president and his top staff were not necessarily heavily involved. the treasury department was. because it was -- it landed on their lap. before the president got on to marine one to go to camp david
10:04 pm
for the weekend we saw in the oval office he was meeting with secretary geithner, 3 p.m. eastern time or so before he got on the helicopter to go. you can bet they were discussing this. >> greta: did they try to act like it is no big deal? >> they were trying to downplay it. in fairness, standard and here's had -- standard & poor's had been signaling this could happen. after cutting the dell deal and getting the markets calmed a little today in part because the jobs numbers, which now we are not talking about, a bit of good news now eclipseed by bad news. -- they thought things would start turn the corner and bam they get hit with this >> greta: ed, thank you. joining us neil cavuto. how serious is this? >> it could be very serious. ed touched on the bigger issues. when you have a ratings agency,
10:05 pm
probably the premiere when it comes to sovereign debt, the debt of countries moody's rates higher or more of a bigger player. when it comes to corporations. fitch is another agency, you hear talk about municipalities, cities and the like. when it comes to rating countries and grading countries, stp -- s&p is it. saying -- by the way i digress to say the world is collapsing to ed henry's arrival here at fox. listen to this line, i'm paraphrasing. fiscal consolidation fell short of what would be necessary. ed touched on this issue as to whether they were double counting, not counting enough the two trillion in debt that was there. let's step back from the package. the package that was agreed upon by democrats and
10:06 pm
republicans, signed by the president earlier this week, effectively said, we will shave two trillion world of spending over the next 10 years. but this was one of those reports as ed has reported as well, people started kicking the tires and looking at what they signed on to. we realized that what was supposed to be a 2.4, 2 1/2 trillion deal was we scored by the congressional budget office more like 2.1 trillion. further the upfront cuts par of that 900 plus billion first waves of spending cuts weren't big. they were barely ripples of more like 28 billion dollars in the next year. barely a rounding -- within a rounding error within a budget. i think the s&p folks who locked themselves into a box and say, look we told you a credible package was four trillion dollars, in 10 years. when i tacked to mitch mcconnell, when i was in --
10:07 pm
when i talked to mitch mcconnell, he was saying the only way to get to four trillion was to include revenues and tax hikes. these agencies are neither republican nor democrat. they do not care. they just want to see tate adds up to four trillion. they don't -- so they don't make political statements as to whether the complexion of the deal is -- hear me out. they are saying if it wasn't going to be four trillion, regardless of the mix, they wouldn't like it. they didn't like it. this is what they did. >> greta: can we stop putting them up on the alter. let's take about these ratings agencies they are the reason the credit swaps got the aaa ratings -- [ talking over each other ] >> please i frankly don't care who is to blame. when it comes to washington pointing fingers it too missed a lot.
10:08 pm
i'm not making excuses for the ratings agencies. >> greta: if they are so up to their eyeballs in creating this cataclysmic problem to what extent are we held hostage to them on a friday night because they don't like the deal, whether it is legitimate or not -- >> the fact of the matter is, they are the only game in town. we can question whether they are right, accurate, successful referee, they are the only game in town. you are right to, questionable paths on default swaps, should even be in this position? it is what it is. i have argued that a country that, like ours that is looking at debt to gdp, almost 100%, probably doesn't deserve a aaa rating any way. agencies over the past have been very much afraid to cut it because it would look awful if they did.
10:09 pm
no what you say, your criticisms are more than valid. i've raisedded them myself. ed has raised them. no -- no doubt about that. no doubt about the the way washington does it books, policing its math and double booking its own savings. no doubting the package they just signed on to calls for cuts half the recommended a.m. by even investors abroad. so that's a -- a fair deal way is not fair is for the u.s. to come back at the agencies and claim you guys are in no position to judge us. fair enough, but the fact is the united states is hardly in a position to judge the fairness of the criticism when it knows full well that the cuts under this deal virtually 70% of them don't take effect until after the year 2017. we can argue the particulars all we want.
10:10 pm
whether a fractured firm or not, the aaa rating that this country has enjoyed for close to a century is gone by one ratings agency. that means, this is what will come up to debate. the market has to decide of its own accord whether the united states is as good a bet as it was before this happen? the history of countries that are downgraded is not as onerous as you think. when japan was downgraded it barely saw an interest rate uptick i think because japan was a basket case to begin with and i was not a fox news alert thising about to be a fox news alert, justifiably. most people felt no u.s. ratings agency would dare try it. today s&p did. >> greta: neil, thank you very much. senator mike lee republican from utah joining us on the phone. your thoughts tonight, first time that s&p has downgraded
10:11 pm
us, disturbing news, regardless of who, what, why? we now have a downgraded situation. your thought? >> it is most unfortunate. it confirms what we've known was coming for a long time. but chief chosen to ignore for a long time. -- but we've chosen to ignore for a long time. our economy, our way of life is our debt and continued deficit ing that washington and the administration are pursuing. -- >> greta: if you listen today neil, he talked about how the deal wasn't enough. i know you didn't like the deal very much. if you had a quick remedy for this situation, what would you suggest? >> i think the answer has to lie with a simple solution, that most americans support, which is permanent structural spending reform. something that will change the underlying problem. it will attack the rob problem at the roots, rather than
10:12 pm
hacking away at branches. constitutional amendment restricting congress' borrowing power. that's the way forward. >> greta: last couple of days as the senate went on recess, were senators talking about this was likely to be coming? >> there are senators who have been saying for a long time that our true threat exists not if we don't raise it, or not just if we don't raise the debt limit but if we raise it without putting the right conditions in place. there are a number of senators, myself included who have been saying this could and likely will happen if we don't take seriously the credit warnings we received from s&p and moody's. >> greta: in terms of this night, obviously came friday night, markets are closed. what do you anticipate come monday morning we are going to experience in this country in terms of how it is going to
10:13 pm
reverberate around the world? >> this has the potential to affect all kinds of things not just for the government also for the consumer. student loans, small business loans to mortgage rates. the it will have a ripple affects on all kinds of things this is inevitable when we continue to [ inaudible ] >> greta: thinking of the diplomatic aspect, national security, china holds our debt, japan, u.k., russia, all our creditors are looking at this and i wonder what they are thinking? >> i do too. it scares me to death. i know there is a way home there is a way out of this mess. we are not going to be able to congress in an economic strait-jacket of sorts. until we tell congress its borrowing power will be permanently restricted.
10:14 pm
>> greta: senator lee, thank you. more with michelle bachmann, do not go away. this is breaking news. a lot going on. [ male announcer ] everywhere your pet goes the frontline plus killing force is there annihilating fleas and ticks. visit and get a coupon for frontline plus. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation,
10:15 pm
because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. ben your lega. get an auto insurance quote. u.s.a.a. we know what it means to serve. at exxon and mobil, we engineer smart gasoline that works at the molecular level to help your engine run more smoothly by helping remove deposits and cleaning up intake valves. so when you fill up at an exxon or mobil station, you can rest assured we help your engine run more smoothly while leaving behind cleaner emissions. it's how we make gasoline work harder for you. exxon and mobil.
10:16 pm
10:17 pm
10:18 pm
>> greta: gop presidential candidate and congresswoman michelle bachmann joins us on the phone from the campaign trail. first of all there's no secret that you voted again the deal tuesday. your thoughts that s&p has now downgraded the united states? >> that's right. nice decision by s&p to downgrade our credit rating to a aa+. historically significant. it is a serious event for the united states. our country has had a aaa rating since 1917 that rating has never been downgraded. it has endured the great depression, world war ii, korea, vietnam and terrorist attacks on 9/11. this president has destroyed the credit rating of the united states through failed economic policies and his inability to control government spending by once again raising the debt ceiling. we were warned by all the credit agencies that a failure
10:19 pm
to deal with the debt would lead to this downgrade. but instead, the president submitted a budget that had a 1.5 trillion deficit. then he requested a 2.4 trillion blank cheque on top of that. president obama is destroying the foundations of our economy, one beam at a time. i call on the president to seek the immediate resignation of treasury secretary tim geithner and submit a plan that balances the budget in year. turn the economy around and put our people back to work. i'm very concerned that the administration tomorrow might look for anyone else to blame. they may blame the tea party. they may blame ratings agencies or anyone else. they knew this was coming in january but they didn't write a plan and they still don't have a plan. >> greta: to the extent that you lay the blame on the president there are a lot of republicans onboard for this
10:20 pm
deal last tuesday which seems to be the move immediate catalyst for this downgrade if you back it up further we have the stimulus bill of 2009, a terrific amount of spending. we've had a republican presidency, leading up to that we've been spending like drunken sailors. this is no big surprise. tuesday apparently was the bomb that set it off. >> that's right. that was the straw that broke the camel's back. that's why greta for weeks i've been leading against this deal in washington, d.c.. i've been saying we have to get our spending and our debt in order. that's what the credit ratings agencies were telling us months ago. that's what i've been saying for weeks. >> greta: those who voted for this deal, do you think they knew they were playing russian roulette with the credit rating? do you think they knew this
10:21 pm
was likely? do you think it is an hurdle, embarrassment for the nation, going to cause problems for americans with higher interest rates, we can recover from this in quick order? >> this is not an embarrass many to the nation. this is a very serious historically significant event that occurred. again, since 1917 we've had a aaa credit rating this is more than historically significant. we are all concerned about what will happen and transpire with the markets monday morning. we aren't sure what investors will do. clearly it was imperative that we deal with our spending priorities and not add to the debt ceiling in the way we did. now we saw the proof in the ing with the market crash we just saw. today was the credit rating this is very significant. that's why the president of the united states needs to submit his plan, finally with place of real cuts to balance our budget in year.
10:22 pm
frankly, there are people, millions of americans, 14 million americans out of work. they need jobs. and the president has to do his job. >> greta: if in november when the super committee meets and they are able to find cuts, do you think it can be turned around quickly enough? is that fast enough so americans won't feel the pinch of the increased interest rates between now and november? >> i don't think this can wait until november. this needs to happen immediately. again, the president knew about in problem in january. despite that fact the following months he submitted a plan for his budget with 1.5 trillion in deficit. the president planned for failure. up to tuesday, not have a plan. he finally has to put on the table what his cuts are. clearly that's what we must do, cut. >> greta: you say the president should ask for the resignation of geithner if he
10:23 pm
doesn't get the resignation f you were president, would you fire him? >> of course, treasury secretary the guy near needs to go. >> greta: why are you blaming him? >> he has been the architect of the so-called economic recovery. the decisions that he has made as treasury secretary -- again at the direction of the president, they are not one that turned the economy and lead to job creation. unemployment is 9.1%, we are manufacturing at a two year low. we can go through all these metrics our economy is in a very poor place now this was unheard of. when the credit agencies downgraded -- >> greta: i've got to go. representative bachmann, thanks for joining us on the special coverage. more on the record, coming up. [ male announcer ] summer is here.
10:24 pm
and so too is the summer event. now get an incredible offer on the powerful c300 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends august 31st.
10:25 pm
the nascar nationwide series, this opportunity...disappears. i know pleasing fans is a top priority, 'cause without the fans, there'd be no nascar. just like if it weren't for customers, there'd be no nationwide. that's why they serve their customers' needs, not shareholder profits. because as a mutual, nationwide doesn't report to wall street, they report to their customers. and that's just one more reason why the earnhardt family has trusted nationwide for more than 30 years. nationwide is on your side.
10:26 pm
the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be ♪ because your moment is now. let nothing stand in your way. learn more at we take it on ours. this summer put your family in an exceptionally engineered mercedes-benz w for an exceptional price during the summer event. but hurry, this offer ends august 31st.
10:27 pm
>> greta: next you will hear from donald trump on the debt ceiling debate. does he think the republicans won or lost? if we had hit the debt ceiling would it had been catastrophic. president obama said he wanted the deal to go through for markets does donald trump believe that? we spoke with donald trump.
10:28 pm
nice to see you. >> thank you. >> greta: donald, the debt ceiling many americans heard back and forth between the two parties if it hadn't gotten raised it would have been catastrophic. would it have been catastrophic? >> i don't think so. the republicans fried hard but didn't make a good deal. the worse thing they could have had it, the one thing obama wanted, to bring it past the election. if they had this come due again before the election he could not have been reelected they agreed to that, i have no idea in addition to that, very little cutting. of course they don't talk about the bush tax cuts. in 13 -- in '13 they expire so taxes will go through the roof. people are saying the republicans made a good deal. i don't think they made a good deal. people are finding out they didn't. a little like the lame duck. they thought they made this great deal with billions and billions. turned out to be nothing.
10:29 pm
this is the same thing. people are finding out. they should have never allowed this to expire after the election. >> greta: what would you have done? >> i would have done a much different deal. i would have had obamacare as part of it. i would have gotten rid of obamacare. if they didn't want to do that, that is going to be destructive for our country. it is a disaster. i have people that going to close up businesses, friends of mine. i would have gotten rid of that and i would have gotten much bigger cutting. >> greta: at the risk of putting us into passing that ceiling republicans and democrats were at each other's throats. if there were no agreement we would have gone past the deadline. >> that was an artificial date. it was a date set by geithner. i think it was artificial. i don't think the president would have allowed that to happen if they asked for a tougher deal. i heard on your show and many other shows, four trillion, five trillion. it is nowhere near knows numbers. those are the numbers you
10:30 pm
needed. they didn't get it. they didn't make the right deal and launched obama's presidency. because this is not going to come up again it comes up after the presidency. what are they doing? >> greta: the democrats and the president said to give some sort of stability to the business, does that mean anything? >> told nonsense. look, right now, if he ran, you would beat him, anybody would beat him because this has been such a mess and so bad for him. it shows he's not so great, okay. anybody would beat him if this happened again, you have a short memory. people have a short memory. if this happened again a couple months before the election he has no chance of winning. that's what they should have done. now, he would have caved. >> greta: you think so? >> yes. i said two, three weeks ago the republicans had all the cards. they had the cards.
10:31 pm
they could have made a much better deal. much better cuts. and -- unless they got it right then it wouldn't have had to expire. if they got 100%, then it doesn't come due and that is fine for everybody. but they didn't make a good deal. and it comes due too late. you going to have maybe obama as a president again. they did it with lame duck. he rose like a phoenix. he was jimmy carter, he rose like a phoenix. they did it with the lame duck, it was a disaster. because they brought obama back. now they've done it again. and i think it is a very serious mistake that the republicans have made. >> greta: there's a second part. the super committee of members of the house and senate both sides of the aisle. is that an opportunity to achieve something or is that another stage of what you say is not a good plan? think it is a great opportunity. every time the republicans negotiate they -- they give the wrong things away. they negotiate hard for the
10:32 pm
small stuff, but the big stuff like the election, they may have given the presidential election away we are talking politics maybe more than what is good for the country. what is good for the country is to get a new president. we have a president now that has made this country the laughing stock of the world. >> greta: did the president out-negotiate the republicans? and out-negotiate even the members of his own party that were unhappy with this deal? >> i think the democrats made a better deal than the republicans. the cuts weren't deep like they were supposed to be. the big thing was the presidential race gets really, i mean he can win easier now. look, the republicans to really do it right, have to take over the presidency. they could have taken over the presidency, if they made this a little bit shorter. instead of coming to after the election it came due before the election. >> greta: why did the republicans agree to that? >> what about the lame duck session, why did they do that?
10:33 pm
they brought obama back. now they've brought him back again in all fairness to romney, he should have been out there saying, i'm running, i'm leading, and i don't want this thing to come due after the election. what does that tell you about romney? romney has been missing in action. he hasn't done a damn thing. he should have been out there saying everything, i don't care about cuts, i want this to come due before the election. >> greta: maybe i'm wrong, people were tiptoeing people feared if we did hit the debt seal that the markets would take a plunge, credit ratings would downgrade us and interest rates would go up. >> if you look at when you use the word catastrophic. >> greta: that's the word they were using. >> we have 15 trillion in debt, right now. a word we never heard two years ago, trillion, trillion there was no word trillion. we have 15 trillion in debt. we are going to 22 trillion
10:34 pm
under this agreement and probably higher. nobody knows what they are doing. to me that's catastrophic. not we are going to miss an artificial date set by geithner. stock markets go down after the deal is made. that means people that smart financial people, say the deal is no good. when you use the word catastrophic, i think it is catastrophic we owe 15 trillion and going to 22 trillion. and we are not respected to the world. hey look, i have many friends in asia, south america. they buy apartments from me, they do a lot, i made a lot of money dealing with the chinese, believe me. these people call me. they say we can believe we are doing the deals we are doing. the united states is not respectedny more because of our leadership. >> greta: is it ideology, they don't understand business, because of the uncertainty of the politics, what is it? >> i think it is everything. but i think it is also the fact that our leaders are not
10:35 pm
as smart as leaders in our countries. they are not -- >> greta: are you saying he's stupid? >> i'm not saying anything. >> greta: you keep saying the president isn't . >> certainly not smart when it comes to business, when it comes to running a country. i don't think this country has ever been so dis as we are now. >> greta: take the shovel out of -- president obama's hand and start digging us into that fiscal hole. that's what michelle bachmann is saying. newt gingrich, pawlenty and santorum and more are coming up. >> are the tea party members terrorists or patriots? a look at how the tea party used its power to -- sarah palin is here on that.
10:36 pm
i know you're worried about making your savis last and having enough income when you retire. that's why i'm here -- to help come up with a plan and get you on the right path. i have more than a thousand fidelity experts working with me so that i can work one-on-one with you. it's your green line. but i'll be there every step of the way. call or come in and talk with us today. in one place. ♪ the race of your life you never ran.
10:37 pm
the trip around the world you never took. the best-selling novel you never wrote. but there's one opportunity that's too good to miss. the lexus golden opportunity sales event, with exceptional values on the lexus es. but only until september 6th. see your lexus dealer. a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more amecans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say.
10:38 pm
10:39 pm
>> reporter: this is a fox news alert from new york. the united states has lost its
10:40 pm
coveted aaa credit rating. standard & poor's downgrading the rate to aa+ for the first time ever. despite last week's deal to increase the credit limit. it could raise rates of credit cards, mortgages and car loans. treasury responded by asserting there was a two trillion error in the analysis. joining us from our new york city studio is neil cavuto. what can you tell us about this? what is going to be the next step? >> right now we have one agency, there are three the biggie, s&p has said you are not deserving of the top credit rating of aaa, we are going to knock you down to aa+ that is still a very nice rating. it is not pristine. for the first time in close to a century, the u.s. moves out of a very exclusive club. there are two types of thought on this some people expressing outrage that s&p did this.
10:41 pm
effectively at a time when the other two agencies, moody's and s&p did not. the time something odd -- the timing is odd as well. after they said the 2.3 trillion debt cutting plan was enough and showed serious resolve on our part as a country to avoid default. apparently that was not good enough for the s&p folks who said the measures you are taking are not enough. to paraphrase, the fiscal consolidation falls short of what would be necessary. what would be necessary for a aaa rated country. the bottom line tonight, whatever the fall-out on investments and what they might yield in the open market, what we might have to given investigators to buy our securities the message is, it is going to cost us now. because the u.s. ratings agency has effectively said to the united states of america,
10:42 pm
you are no longer the best. >> reporter: all right neil cavuto thank you for that. i'm marianne rafferty. now back to on the record. we'll have the latest as well as your latest headlines. log on to you are watching the most powerful name in news, fox news channel. ♪ ♪ ♪ ♪ ♪ >> greta: many are pointing fingers at president obama. they say his economic policies
10:43 pm
are failing us and he bungled the dell sealing debate many what do the people -- the debt ceiling bay. what did the people who want to take over the job and what would they do if they were in the office? >> we needed to balance the budget and limit the size and scale of the government. what they did with this proposal was kick the can down the road. everyone knows the cuts in the first two years are small. those are the own ones that can be controlled. in two years there maybe a new congress. hopefully, a new president. maybe we can get more if this president is reelected those cuts are not going to take place. you have this promise of maybe somebody coming forward with a bill that will reduce the deficit more. if it doesn't you are going to cut defense spending which is the laugh thing we should be doing. i think it was a bad deal. >> our biggest problem is our economy is flatfooted. they are not creating jobs. we are not the economy we should be. we are not delivering for the
10:44 pm
people of this country what they expect. we ought to be a leader. in order to do that we have nation building. we have to get our house in order our core is broken and weak. we have to repair that. >> i'm running for president because we got a deficit and debt out of control we have to bring that back in control and an economy that needs to grow. a big part is reducing and reforming entitlement programs. that is the truth. the theme of our announcement this morning was telling the truth to the american people. we have to look people in the eye and telling them for the new people coming into the workforce, in the system we have to raise the retirement age over time. we have to look the american people in the eye and tell them this truth. if you are wealthy, you are not going to get your annual cost of living adjustment, middle or lower income, you will. a few other changes like that. we are not going to solve this problem if we say the on people affected are somebody else or some other program. i'm telling this emwhat it is going to take to get out of
10:45 pm
this mess. we are telling them the truth. -- i think america will spoken and respect that and together we can fix this country and get it back on track this president has added trillions, we wouldn't be in this crisis right now if he wouldn't have spent that trillion on stimulus and more on the budget and more on obamacare. but for those trillions in spending, we wouldn't be in this mess we are in. we would still be in a bad spot, but nowhere near the hole. take the shovel out of the president's hand so we don't dig deeper. >> first, i never would have allowed this to become a crisis. >> greta: how? >> if a year ago this president had taken the leadership position, he could have, at that time, made sure we would pay the interest on the debt. make sure we pay our military and our military families. make sure we pay the social security recipients and the bills of medicare and medicaid. everything else would have been on the table. that's when you are forced to make hard choices.
10:46 pm
a year ago it wouldn't have been as painful. today it is going to be more painful to do the same thing. i still think you can do it. >> as president, if it had been a president gingrich working with mitch mcconnell and john boehner we would have solved this early and easily. partially because we have common values. we believe in a balanced budget, less spending and lower taxes and a bigger when. the challenge is you have a very left wing president who believes in a set of things that were repudiated in 2010. but he is the president. and you have this new republican house driven by the election of 2010. and a senate that is halfway in between. that's what made it so very, very complicated. >> greta: governor romney has not spoken out at length about the debt ceiling deal but did release a statement that said in part:
10:47 pm
>> greta: congressman ron paul said he never voted to raise the debt ceiling and say he never will. and if elected i will balance the budget in the first year of my term. i will not allow the fed to destroy the value of our money by shoveling dollars into the pockets of its banker friends. straight ahead, it is almost unanimous, the tea party had a big influence in this debate. is this an isolated incident? governor sarah palin joins us.
10:48 pm
10:49 pm
10:50 pm
the whole reason this debate is happening because of the tea party movement. if it weren't for us they would have been on to the income thing. we have to keep up the fight and keep pressuring them. the best thing for this country is to do what is necessary to rein in this out of control spending so the country doesn't go bankrupt. >> greta: talk about tea party power it used it clout to steer the conversation making many furious. some state tea party held the economy hostage. congresswoman cleaver call the
10:51 pm
final compromise -- congressman cleaver call the final compromise a tea party sandwich. a balanced budget amendment was par of the deal. the amendment doesn't have to pass but it does have to be voted on. we spoke to governor palin on the influence on the debt ceiling deal. i'm surprised by many in washington in response to the tea party. each one of these members of the tea party ran campaigns, very obvious what they promised to each of their constituents. it want look a big surprise what they were going to do unless they rolled over and went with the establishment this was self-evident. although i'm surprised that by many of the vets i guess they they did get the balanced budget amendment on the side. it is not a surprise. i guess people thought they would be different when they came to washington. >> yeah, perhaps some of these talking heads and liberal politicians who refer to tea
10:52 pm
party patriots as terrorists, perhaps they thought they were going to be typical politicians. they they get -- where they get into office and change their stripes. you are making a great point in that it should not be a surprise to the politicos when they realize now that many of these tea party patriots who ran for office and were supported by independent americans who want the best for the most exceptional country on earth, once they got into office they were going to fulfill their promises. their props were not take steps to incur more debt when we are 14 little trillion in debt and drowning in that unsustainable debt that we are handing to our kids on grandkids. the steps that tea party patriots are taking today, should not come as any surprise when they are sticking to their principles. >> greta: it will be interesting to see what happens. the tea party did change the
10:53 pm
discussion here in washington. it is a little like trying to change the direction of aircraft, not easy. that's huge. i'm curious whether the american people will take -- [ unintelligible ] they are worried about their own lives, whether this is now going to -- now they going to take this victory and move on, i don't know. >> i think that we shall take this victory and make sure that our politicians in office today are learning from this victory, realizing that it is not 100% pure victory, realize, we just handed them a liberal president, i believe in u.s. history, a 2.4 trillion dollar debt increase. we are allowing them to increase the budget, even more. without guaranteed cuts and guaranteed reforms. we have to make sure we realize that yes this is a
10:54 pm
victory because tea party patriots did schiff the debate. however there's so much more work to do to get the economy back on the right track and restore the exceptionalism that is america. >> greta: that does take some time. we can't there a switch. we have to work into any sort of change. in whatever direction. i see this as a significant change the people are talking about in this country. the only thing in terms of this deal, there is that balanced budget amendment vote on the side, which i think is a significant victory. wouldn't thing i'm curious about, i think most of the cuts are in the back end after the he -- after the election which the republicans and democrats care about because they don't want their constituents cut. i don't like that it was pushed through at the last minute while they go off on their five week recess and nobody has read it. i want people to read it and think about it. >> right.
10:55 pm
a couple of thing there is. one is obama did get what he wanted in terms of not having to deal with this issue until after the election that was his part a victory there. another thing in terms of timing of all this. what happened to the pledge that our congressmen had made to america, saying they would post online for three days, any bill before it was voted upon? they've already broken that pledge. doggone it that makes us disappointed in our politicians. we want to make sure they are fulfilling the props they've may. a step in the right direction. -- still, i'm not celebrating as 100% victory the acts that have been taken. again, we are handing a very liberal president and his colleagues, a in order to spend -- a check in order to spend more money that we don't have. we are not taking the steps still to reform entitlements so those safety nets can be
10:56 pm
there for future generations. we are not taking steps greta, to become energy independent. we are still over there talking to dictators. talking to foreign country leads. asking them to ramp up development of energy supplies when we have god given resources here that we should be developing in order to be energy secure. one more step to get the economy back on right track. >> greta: is washington going to do to tackle our mounting debt problems? stay tuned. ends against occasiol constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.
10:57 pm
two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands ojobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for oucountry's energy security and our economy. that's good for oucountry's energy security so i took my heartburn pill and some antacids. we're having mexican tonight, so another pill then? unless we eat later, then pill later? if i get a snack now, pill now? skip the snack, pill later... late dinner, pill now? aghh i've got heartburn in my head. [ male announcer ] stop the madness of treating frequent heartburn. it's simple with prilosec otc. one pill a day. twenty-four hours. zero heartburn. no heartburn in the first place. great.
10:58 pm
what's vanishing deducti all about ? guys, it's demonstration time. let's blow carl's mind. okay, let's say i'm your insurance deductible. every year you don't have an accident, $100 vanishes. the next year, another $100. where am i going, carl ? thnext year... th was weird. but awesome ! ♪ nationwide is on your side ♪ that's not how successful investing is done. at e-trade it's harnessing some of the most powerful yet easy to use trading tools on the planet to help diversify, identify opportunities, take action. it's using professional grade research and your brain to seek maximum returns to reach your goals. it's investing with intelligence and cold hard conviction. you made the money. you should have everything you need to invest it. e-trade. investing unleashed.
10:59 pm
there's another way litter box dust:e purina tidy cats. tidy cats premium line of litters now works harder on dust. and our improved formulas neutralize odors better than ever in multiple-cat homes. so it's easier to keep your house smelling just the way you want it. purina tidy cats. keep your home smelling like home. >> greta: we havey7 a $14 trillion debt that keeps growing by the minute. are our leaders tapping into mounting debt problem or consumed by self interest? and gridlock? and how will this debt debate paint the conversation


info Stream Only

Uploaded by TV Archive on